Solving the Big Problem Most Investors Don’t Know They Have

21 August 2022
33 min listen


The mission of the AB Advisor Institute is to share findings from the behavioral sciences that can directly impact the commercial success of an advisory practice. One of the most important insights from the discipline of behavioral economics is the idea that much of human decision-making is controlled by nonrational, automatic mental shortcuts known as heuristics. 

Scott and Ken explore the strengths and weaknesses of the research and discuss how advisors can use insights from behavioral economics in their work with clients. Advisors learn how one of the most common heuristics, narrow framing, impacts the advisor-client relationship. The goal is to teach advisors to work more effectively with clients by understanding how heuristics influence the day-to-day decision-making of high-net-worth clients.

The information contained herein reflects the views of AllianceBernstein L.P. or its affiliates and sources it believes are reliable as of the date of this production. AllianceBernstein L.P. makes no representation or warranties concerning the accuracy of any data. There is no guarantee that any projection, forecast or opinion in this material will be realized. Past performance does not guarantee future results. The views expressed here may change at any time after the date of this publication. This video segment is for informational purposes only and does not constitute investment advice. AllianceBernstein L.P. does not provide tax, legal or accounting advice. It does not take an investor's personal investment objectives or financial situation into account; investors should discuss their individual circumstances with appropriate professionals before making any decisions. This information should not be construed as sales or marketing material or an offer or solicitation for the purchase or sale of any financial instrument, product or service sponsored by AB or its affiliates. References to specific securities are presented solely in the context of industry analysis and are not to be considered recommendations by AB. AB and its affiliates may have positions in, and may affect transactions in, the markets, industry sectors, and companies described herein.

About the Authors